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Satyajit Das

Why Traders Have Lost Their Touch

The Masters of the Universe are looking pretty fallible.
Betting wrong can get you fired.

Betting wrong can get you fired.

Photographer: Michael Nagle/Bloomberg

Today’s traders and portfolio managers -- self-described Masters of the Universe -- have hardly covered themselves in glory recently. Their surprise and initial panic at the Brexit result doesn’t say much for the extraordinary foresight, skill at managing risk and large pay packages many of them claim.

Truth is, whatever successes they’ve notched till now probably owed more to specific economic conditions than to their talent and brains.